Market Based
Since Cote d'Ivoire is largely agriculture based, 70% of the people are involved in agriculture, so the economy is market based for the most part. The reason they are market based is because they are privatized, because the individual farmers own the land instead of the government. The reason Ivory Coast became market based is, because in the 1990 they adopted Structural Adjustment Policies set by IMF that led to deregulation, export led growth and privatization. Export-led growth has been mostly what has driven the economy, because of the vast natural resources in coffee and cocoa that Ivory Coast has to offer.The problem is that not much else is going right and the industry has not become efficient enough to really benefit the economy. What is hurt, because the government is so market-based since the SAPs, is that infrastructure, such as school buildings, roadwork and hospitals have been lacking, because the government lost money when privatizing everything and since then have spent a lot of money paying back debt that they own to different countries. The government has not been able to fill the savings gap, because they are indebted and so the people have not been able to build this infrastructure without the government domestic spending. Another problem with the market-based approach that had no interventionist setup is that since the government never did give the people much infrastructure, or a place to start, the short run unemployment and rise in prices has become long-run, because no public services have been improved. Also, because not much investment has been made the people are at a standstill in economic growth. The civil war starting in 2002 and political instability have been a drawback, and the even the little money that the government did put back into the economy before 2002 was total diminished and the market-based policies have not been able to increase the growth of the people. What is most hurt by the policies is the rural areas of the country, because a lot is focused on Abidjan, the capital, and then the rest of the country does not feel the effects of the economic development, all that happens is there is more of an inequality between the rich living in the capital and the poor living on farms.
What my solution to the economic situation in Ivory Coast would be is, that I would create an interventionist approach for the short-run just so the infrastructure could be built up and the people would have something to work off of. In the long-run I would turn to a market-based approach like Cote d'Ivoire is doing now, because they creates more employment and trade which is what Ivory Coast needs to boost its economy.
Well my work is done here now Ivory Coast. Good luck!!
Just like Mario, I also don't regret staying up late to finish this project :)
What my solution to the economic situation in Ivory Coast would be is, that I would create an interventionist approach for the short-run just so the infrastructure could be built up and the people would have something to work off of. In the long-run I would turn to a market-based approach like Cote d'Ivoire is doing now, because they creates more employment and trade which is what Ivory Coast needs to boost its economy.
Well my work is done here now Ivory Coast. Good luck!!
Just like Mario, I also don't regret staying up late to finish this project :)